\u3000\u3000 Anhui Huaheng Biotechnology Co.Ltd(688639) (688639)
Events
The company released the annual performance express in 2021. The annual revenue in 2021 was 954 million yuan, a year-on-year increase of 95.9%; In 2021, the net profit attributable to the parent company was 168 million yuan, a year-on-year increase of 38.3%, and the non net profit attributable to the parent company was 150 million yuan, a year-on-year increase of 55.3%.
Brief comment
The annual performance was in line with expectations, and Q4 profit increased significantly
The company's annual revenue in 2021 was 954 million yuan (with an increase of 95.9%). During the reporting period, the company further enriched the variety of products, and L-valine products began to add the growth of the sales scale of the original products, resulting in a significant increase in revenue. The net profit attributable to the parent company in 2021 was 168 million yuan (an increase of 38.3%), of which the net profit attributable to the parent company in Q4 in 2021 was 65.43 million yuan (an increase of 83.7% year-on-year and 65.2% month on month). The company's performance entered a period of rapid growth.
Strong demand for valine and global layout of relay company
Valine is mainly used in feed breeding, medicine, food and other industries because of its effect of promoting protein synthesis and enhancing immunity. With the gradual promotion of the "reduction and substitution of corn soybean meal" and the "prohibition order", the demand for valine is expected to increase. While vigorously expanding sales channels in China, the company opened the layout of the global market. On January 25, 2022, the company was invited to participate in IPPE poultry feed and meat processing exhibition, and exhibited valine series and other products produced by exclusive patented fermentation technology here. This is the first global exhibition the company has participated in since entering the field of animal nutrition, It is the epitome of the company's globalization strategy.
Multi project volume is imminent, and the growth track continues to expand
The company's IPO project with an annual output of 25000 tons of alanine and valine alternately and the technical transformation and expansion project with an annual output of 5000 tons of alanine are expected to release performance this year, and the project with an annual output of 16000 tons of three branched chain amino acids and their derivatives and 7000 tons β- The alanine derivative project is steadily advancing. The large volume of alanine and valine, the company's flagship products, is conducive to the company to seize the market and release performance flexibility. In addition, focusing on the two core processes of fermentation method and enzyme method, the company continued to lay out in the field of synthetic biology and successively realized α- The industrialization of arbutin and calcium d-pantothenate has incubated 1,3-propanediol and other products, which is expected to expand to larger chemical monomers, degradable and other industries.
Profit forecast and Valuation: it is estimated that the net profit attributable to the parent company from 2021 to 2023 will be 168 million yuan, 223 million yuan and 380 million yuan respectively, and the corresponding PE will be 71.6x, 54x and 31.7x respectively, giving a "buy" rating.
Risk tips:
Price fluctuation of raw materials; Downstream demand is lower than expected; Industry competition intensifies
